Consider the Following Two FIs: Company a Has $500 Million

question 38

Multiple Choice

Consider the following two FIs: Company A has $500 million in total assets and total costs equal to $200 million.Company B has $60 million in total assets and total costs equal to $24 million.

What can you conclude about the cost structure of the market consisting of the two FIs?

• A)There are significant economies of scale because both companies A and B coexist in the industry.
• B)There are no significant economies of scale because company A is much larger than company B
• C)There are no significant economies of scale because the unit costs are constant.
• D)There are significant economies of scale because the unit costs decline as size increases.

Compare alternatives in financing current purchases and their trade-offs.

Describe federal protections against billing mistakes/errors.

Understand and identify phishing scams.

Recognize considerations before cosigning a loan.

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Definitions:

Cognitive Behavioral Therapy

A form of psychotherapy that aims to change patterns of thinking or behavior that are behind people's difficulties.

Solution-Oriented

An approach focused on finding effective and practical solutions to problems rather than dwelling on their causes.

Second Wave

Refers to the second significant phase or period of development, movement, or activity, often implying a resurgence or intensification of elements from an initial wave.

Nuclear Family

A family unit consisting of two parents and their children, living together as a single household.